I would not say that much, but be clear that it will take much Tanzania Email List longer to cross the profitability threshold. Let’s do numbers The point is this: an advertising campaign works when it reaches the people it wants to reach (that is, the target ), the ads reach an acceptable CTR (% of clicks on people reached) and generate a decent conversion rate . But in eCommerce that conversion rate ranges between 1% and 3%, depending on the sector. Let’s imagine that your campaign generates 1,000 clicks and has cost you € 300, which means a cost per click -CPC- of € 0.30, which is acceptable depending on the channel.

Inspirational merchants

Assuming your eCommerce website is moderately optimized for conversion. If the average purchase amount is € 50, you will sell € 500 and you will think “my online advertising campaign is not working. To sell € 500 I had to spend € 300, with which I have lost money ». But it does work. All parameters are ok. The problem is, again, budget. The budget / conversion ratio, the CTR and even the CPC do not change in a linear way when you increase the budget. It is not a rule of three: if with € 300 you get 1,000 clicks, it is very likely that with € 600 you will get quite a lot more than 2,000 clicks and that you will do it with a lower CPC.

Tanzania Email List

A larger budget means a greater reach in number of people, and the more people you reach, the greater the optimization , both the one that the advertising platforms perform automatically with their algorithms and the one that you can do manually by tracking the results. That is to say, the normal thing is that a campaign of € 600 is much more profitable than one of 300… and so on as the budget increases. The optimization grows on a logarithmic, non-linear scale. The crossing point of both graphs is not a defined and immutable point for all campaigns and all sectors . It would be too easy.

Leave a Reply

Your email address will not be published. Required fields are marked *